SAO PAULO (Reuters)-BTG Pactual () announced on Monday the entry in Uruguay with the acquisition of HSBC operations in the country for US $ 175 million (R $ 973 million), expanding its presence in Latin America and reinforcing the position of largest investment bank in the region.
The bank said it will operate in the areas of retail, corporate credit, investment bank and fortune management, with the offer of products and services to the public that resides or has business in Uruguay, as well as for companies of all sizes.
“It is a movement very in line with our growing strategy of revenue diversification for the rest of Latin America beyond Brazil,” the partner Rodrigo Goes, responsible for BTG’s performance in other countries in the region, told Reuters, which will also be ahead of the operation in Uruguay.
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“It was a very interesting, very opportunistic transaction. HSBC is leaving South America, sold its assets in Brazil, more recently sold in Argentina and has now decided to sell in Uruguay. We ended up buying at a price we considered very attractive,” he added.
At the end of 2024, HSBC had five agencies in Uruguay, a net equity of US $ 144 million and US $ 47 million in additional capital instruments held by the HSBC group, according to BTG statement. According to Goes, the unit has about 50 thousand customers and market share of about 7%.
The value of the transaction includes additional capital assets and instruments and is subject to adjustments to reflect changes in equity until the date of completion of the business, which depends, among other conditions, on regulatory approvals. The expectation of BTG is that this will occur in six to 12 months.
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In Latin America, BTG is already present in Chile, Colombia, Mexico, Peru and Argentina, besides Brazil.
According to Goes, the region already represents about 12% of bank revenues, with return levels very similar to the performance of Brazil. The other Latin American countries, he added, have approximately 20% of the bank’s corporate credit portfolio, with spreads very similar to those obtained in Brazil.
The executive stated that the acquisition brings value to BTG in the day one from the return point of view. He did not specify the current return of the operation, but said the returns in Uruguay are very interesting in a range of 25% to 30%. “In the case of HSBC, it’s more at the top range of this” range “,” he added.
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He also listed other factors for BTG entry into Uruguay, such as an “extremely stable” economy and a well -consolidated banking jurisdiction. It also weighed the fact that the country is quite friendly for investments, although, according to Goes, it was not the main reason.
“Things got married … We had a salesman interested in selling because it was part of the strategy, to be leaving the region, so we were able to buy an asset at a very attractive price, with great returns, in a jurisdiction that we enjoy very and very important for ‘Wealth Management,” he said.
BTG Pactual has been expanding its performance abroad. Last year, the bank closed the purchase of My Safra in the United States, where it already has offices in Miami and New York. More recently, he established BTG Pactual Europe, after completing the acquisition of Luxembourg’s FIS Privatbank in 2023. He also has a physical presence in Portugal, Spain and the United Kingdom.
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“The acquisition of HSBC in Uruguay is an important part of our internationalization strategy and strengthens our presence in the region,” said BTG’s executive, Roberto Sallouti, in the press release.
In Latin America, Goes said, Uruguay’s operation should be in the “top 3” excluding Brazil, behind only Chile and Colombia.
BTG also awaits a bank license reply in Peru, which the bank estimates that it will take place in nine to 12 months, as well as looking at other opportunities in the region, according to the executive, especially Mexico and Argentina.
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In Mexico, he said the bank analyzed some assets that had a good mix with BTG business areas, but business never advanced. “We have always been very careful about the price we paid … We are very interested, but we don’t find anything yet.”
Regarding Argentina, the executive said that the BTG already has a small, very profitable operation. He mentioned that, despite the improvement of the macroeconomic point of view, it is a country with great volatility, with the macro very unstable in recent decades. “We are not ready yet to make a movement,” he said.
(US$1=R$5,5622)
